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PRESENTATION
ON
FINANCIAL ANALYSIS
DATA ANALYSIS
TYPES OF RATIO
Ratio can be classified into four broad groups:
LIQUIDITY RATIOS
SOLVENCY RATIOS
PROFITABILITY RATIOS
LIQUIDITY RATIO
Liquidity ratio measures the ability of the firm to meet its current obligation. In fact, analysis of liquidity
needs the preparation of cash budgets and cash and fund flow statements; but liquidity ratio, by
establishing a relationship between cash and other current assets to current obligation, provide a quick
measure of liquidity.
The most common ratios which indicate the extent of liquidity are:
Current ratio
Quick ratio
CURRENT RATIO
INTERPRETATION
Details 2015 2014 2013 2012 2011
1.46
CURRENT RATIO 1.69 1.55 1.45 1.49 The current ratio of 2:1 is considered
24696.4 18435.6 13520.68
Current Assets 8 18639.57 18143.54 7 to be satisfactory. The analysis is proved that the
14547.8 12323.7 9216.34
Current Liabilities 7 11983.30 12444.30 3 current ratio position of the company is not fully
satisfactory. That is 1.46 times in 2011, 1.49 times
FIGURE SHOWING QUICK ASSETS TO CURRENT LIABILITIES and 2015 the quick ratio is 1.11, 1.16, 1.21,1.32and
35000
30000
1.07 times respectively of the current liabilities.
25000
20000
15000
10000
5000
0
2015 2014 2013 2012 2011
Sharehold 18201.4 13500.18 13133.78 12103.75 9194.81 ratio shows the lesser risk to the creditors. In 2011
ers
it is 0.32, 2012 it is 0.42, 2013 it is 0.39 , 2014 it is
Funds
Total 42521.46 36868.26 33549.04 28420.59 28337.69 0.36 and 2015 it is 0.42 . The proprietary ratio will
Assets
be satisfactory.
FIGURE SHOWING SHAREHOLDER'S FUNDS TO TOTAL ASSETS
70000
60000
50000
40000
30000
20000
10000
0
2015 2014 2013 2012 2011
5000
0
2015 2014 2013 2012 2011
INTERPRETATION- The operating cost ratio shows the Operating Ratio Operating Cost Net Sales
Fixed 0.62 0.89 1.03 1.19 1.11 FIGURE SHOWING NET SALES TO FIXED ASSET
assets 35000
30000
turnover
25000
Ratio 20000
Net Sales 11050.31 13116.11 13358.37 12853.12 13092.79
15000
10000
Fixed 17551.30 14665.39 12959.07 10744.11 11754.32 5000
Asset 0
2015 2014 2013 2012 2011
INTERPRETATION- There is a more investment in fixed Fixed assets turnover Ratio Net Sales
Fixed Asset